Maryland lawmakers are considering bills that could expand eligibility for property tax credits for disabled law enforcement officers or rescue workers. The bill under consideration basically expands eligibility for the property tax credits in Maryland by reducing the amount of time the officers or workers must own their home in the state to be eligible.
How The Bills Expand Eligibility For Property Tax Credits In Maryland
Currently, a disabled law enforcement officer or rescue worker in Maryland is eligible for the property tax credit if they acquired their home within 10 years of being adjudged permanently and totally disabled.
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Similarly, a surviving spouse is eligible for the credit if the dwelling was acquired within 10 years of a fallen law enforcement officer or rescue worker’s death.
However, the Maryland General Assembly is considering two identical bills, Senate Bill 435 and House Bill 508, that reduce the existing domicile-dwelling timeframe from 10 years to five years.
In other words, the bills expand eligibility for property tax credits in Maryland for a disabled law enforcement officer, rescue worker or surviving spouse who owned their home in the state anytime within five years before they became disabled or died.
In addition to expanding eligibility for the property tax credits in Maryland, the bills also call on local governments to define the terms “disabled law enforcement officer” and “rescue worker” for the purpose of determining eligibility for the credit.
Both bills enjoy the support of the Maryland Association of Counties and Fraternal Order of Police Montgomery County Lodge 35. HB 508 has passed both chambers, while SB 435 is currently being heard in the opposite chamber.
Tax Credit For Student Loan Debt
Separately, last month, Maryland Gov. Wes Moore announced that residents who incurred student loan debt were awarded nearly $9 million in 2022 tax credits by the state’s Higher Education Commission.
Moore stated that the commission had distributed about $9 million in tax credits this year to more than 9,000 residents. Since the start of this credit in 2017, the state has distributed almost $50 million in tax credits to eligible taxpayers.
“This program offers Maryland residents a critical advantage when looking for options to pay off student loan debt,” Moore said in a statement. “These tax credits support student success through less debt.”
To qualify for the credit, taxpayers must have incurred a minimum of $20,000 in undergraduate and/or graduate student loan debt. The taxpayers also must have a minimum of $5,000 in outstanding student loan debt.
Eligible residents can claim this credit when filing their state income tax return. Those who receive the credit need to prove to the Maryland Higher Education Commission that they used the money to pay the qualifying student loan debt.
